Question
Two years ago you bought a bond at $976. At the time of the purchase, the bond had a coupon rate of 8% paid semi-annually,
Two years ago you bought a bond at $976. At the time of the purchase, the bond had a coupon rate of 8% paid semi-annually, a par value of $1,001, and a maturity of 10 years. If you sell the bond at the current price of 1,051, what is your realized rate of return from this investment?
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Principles of Managerial Finance
Authors: Chad J. Zutter, Scott B. Smart
15th edition
013447631X, 134476315, 9780134478197 , 978-0134476315
